BANKS have asked for more than 8,000 Welsh homes to be repossessed this year, a rise of nearly a fifth compared with last year, it emerged yesterday.

BANKS have asked for more than 8,000 Welsh homes to be repossessed this year, a rise of nearly a fifth compared with last year, it emerged yesterday.

Figures from the Ministry of Justice show 8,005 mortgage repossession orders in Welsh courts in the first nine months of this year, a rise of 19% on the first nine months of 2007.

The figures are particularly bleak in Merthyr Tydfil and in parts of Mid and North Wales. The Conwy and Colwyn County Court has seen a 77% rise in repossession cases over the year.

Merthyr County Court has seen a 41% rise, while the figures for Wrexham and Carmarthen are both up 40%.

Not all court proceedings lead to repossessions, with around 40% of orders made suspended. The Council of Mortgage Lenders (CML), which does not compile Wales-only figures, said more than 11,000 homes were repossessed across the UK in the third quarter of the year – 12% higher than the same period last year.

Prime Minister Gordon Brown said he was urging banks to help people keep their homes when they get into difficulties. Instructions have been given to courts to ensure that alternatives are considered before repossession orders are issued, he said.

On a radio phone-in show, Mr Brown said: “I am determined that the rules are properly followed and there has been an order issued to the courts by the judges that all proper procedures have to be followed.

“So, for example, a mortgage could be renegotiated, a mortgage could be spread over a longer period of time, some help can be given in periods of unemployment or changes in family circumstances.”

Nationalised bank Northern Rock has been the subject of much criticism for its above-average repossession rate, and Mr Brown said he was planning “some changes very soon” at the bank.

The CML said banks and building societies would “look at every possible way of minimising repossessions”.

Michael Coogan, the organisation’s director-general, said: “The CML and lenders are absolutely committed to ensuring that repossession is only ever a last resort.

“Most borrowers who face payment problems successfully keep their home by working with their lender – anyone worried about mortgage payments should contact their lender at the earliest opportunity, before arrears build up.”

He said the Government had taken “some helpful steps” to support vulnerable households, but urged ministers to go further.

“Increased help with housing costs is needed for a wider range of borrowers facing unforeseen repayment difficulties,” he said.

The Government has launched a range of initiatives to help people who cannot keep up with their mortgage to stay in their homes.

These include enabling them to sell their home and rent it back from a social landlord, or entering into a shared equity or shared ownership scheme on their property.

A new pre-action protocol also came into force on Wednesday in which the courts must stop repossession actions unless all alternatives have failed.

But the Liberal Democrats warned that “a flood of repossessions is just around the corner”, while Shelter’s chief executive, Adam Sampson, said there were “severe shocks to come” with increases in unemployment, negative equity and defaulting on buy-to-let mortgages.

“Lenders may claim they are using repossessions as a last resort, but they must not pat themselves on the back too soon as both repossessions and arrears are still continuing to rise,” he said.

A cut in interest rates when the Bank of England meets next month is now increasingly likely. Last month the rate was cut to 3%, but it may go down to as low at 1.5% – which would make re-mortgaging homes easier, provided high street lenders pass on the rate cut to customers.

Family ’on their knees’ with mortgage payments

Family ’on their knees’ with mortgage payments

A FAMILY of six face losing their home as the number of properties being repossessed continues to soar.

Father-of four Rob Waters, 44, from Pontllanfraith in Blackwood, was threatened with repossession when he fell behind with his mortgage repayments after giving up work to care for his wife and children Sarah, 20, Victoria, 17, Robert, 13, and eight-year-old James.

“My wife had a second heart attack in July and I gave up work to look after her,” he said.

“We got behind with our mortgage payments because we just couldn’t afford it.

“Our mortgage lender, Rooftop Mortgages, were asking for £110 a week. We struggled on for a couple of weeks but some weeks we couldn’t give them anything at all. We were basically on our knees.”

Mr Waters was taken to court and was told to pay an extra £83 a month on top of his existing mortgage.

In desperation, he contacted homeless charity Shelter Cymru for help.

He said: “When I came out of there, I felt like the weight of the world had been lifted from my shoulders. It was such a relief.

“Things are still up in the air, but they put me in touch with a mortgage rescue team.”

Despite her heart problems, Mr Waters’ wife Justine, 40, is now working part-time as a barmaid to help with the repayments on their three-bedroom terrace.

“She’s still not 100% better but we are managing to pay £120 a month and waiting for our next court date,” said Mr Waters, a former delivery driver.

“We are just looking to the future and the light at the end of the tunnel.

“After what we’ve been through, our health is the most important thing.”

Suicide blamed on irresponsible lending

Suicide blamed on irresponsible lending

THE twin brother of a taxi firm owner who took his own life has claimed “irresponsible lending” by credit companies pushed him over the edge.

Darrel Musgrove hanged himself from a tree in woods off the B5106 between Conwy and Betws y Coed in July.

An inquest yesterday heard financial problems were the “catalyst” for his suicide.

But the 37-year-old, who owned Llandudno cab firm Daz’ll Drive U, was also upset after a divorce and was missing his seven-year-old daughter. It also emerged he had a history of mental health problems and had overdosed on paracetamol tablets in 1997.

But his accountant brother Garrad investigated his financial affairs after his death and suggested his creditors had much to answer for.

The cab firm began trading last November and, after just eight months, it had made a loss of around £23,000.

Darrel, from Llandudno, was still able to secure £179,000 in credit from four finance firms to expand his business with more cabs. He faced repayments of £4,000 a month.

Mr Musgrove said: “The car sales company he dealt with along with the various finance companies allowed him to obtain vehicles worth £195,000 and, after obtaining deposits of £16,000, left him with a hire purchase debt of £179,000.

“These figures even included three vehicles which weren’t actually delivered.

“So, though he was struggling to cope with the fleet of vehicles he already had, he was still allowed to put deposits on these other vehicles.

“When I asked the company what checks they do, they told me they ask for bank statements.

“I know myself as an accountant that bank statements mean nothing as far as the profitability of a business is concerned.”

Bharti Gittins, the assistant deputy coroner for North Wales Central, recorded a verdict of suicide at Llandudno Magistrates Court yesterday.

After the hearing Mr Musgrove, from Penrhyn Bay, said: “In the current climate I feel this type of selling needs to be highlighted as these companies do not seem to care about the difficulty you’re in once they’ve sold you their products.

“I know for a fact my twin brother was receiving letters and phone calls in the weeks leading up to his death from the finance companies after he realised his predicament and tried to cancel the agreements.

“I realise this can’t bring my brother back, however, these finance companies need to realise that the way they are operating at the moment affects people’s lives and the situation obviously needs regulating further.”